Many Carriers Expect to Grow Capacity, Replace Old Trucks

WINDSOR, CO — Many U.S. carriers expect to grow capacity and plan to replace aging trucks, according to a survey by Transport Capital Partners.

Since the HOS rules caused fewer hours per day utilization of equipment, carriers are being pushed to increase capacity and raise driver pay.

For the first time ever 30 percent of carriers expect to add between six- and 10- percent capacity. The number of carriers indicating they are not going to add capacity has been trending down, and is now at its lowest level yet for this survey (27 percent).

Among those intending to add capacity, the percentage of carriers planning to add capacity through the use of independent contractors has jumped 63 percent (from 16 percent to 26 percent). The most commonly reported method for adding capacity is through company equipment that is either financed or purchased on a Trac Lease. Carriers adding capacity by purchasing other carriers has increased from zero percent three quarters ago to six percent.

Aging Tractors Being Traded Out

Forty percent of carriers said they expect to replace 11 to 25 percent of their fleet in 2014.

“We suspect that all the 2007 pre-buy tractors are being traded out. If smaller carriers are not able to replace older, less fuel-efficient equipment (and their higher maintenance costs), those carriers will not be well positioned to benefit from looming good times,” said Richard Mikes, a TCP partner.